Extraordinary Termination Due to Breach of Duties
Under Estonian law, an employer may terminate an employment contract extraordinarily if an employee has breached their duties. This process is strictly governed by the Employment Contracts Act (ECA) § 88.
Grounds for Termination
Pursuant to ECA § 88 (1), an employer may terminate the contract if the employee:
- has disregarded reasonable instructions or breached duties despite a prior warning;
- has committed a significant and culpable breach of duties;
- has been at work in a state of intoxication;
- has committed theft, fraud, or another act that leads to a loss of trust.
The Requirement of a Warning
Before terminating the contract, the employer is generally required to issue a written warning (ECA § 88 (3)). The warning must clearly state the nature of the breach and inform the employee that a repeated breach may result in termination. A warning is not required if the breach is so severe that the employer cannot reasonably be expected to continue the employment relationship.
Formal Requirements
The notice of termination must be submitted in a format that can be reproduced in writing (ECA § 85 (1)). The notice must clearly state the reasons for the termination and the date of the last working day. Employers must ensure that the termination is justified and proportional, as failure to follow these requirements can lead to legal disputes.
Challenging the Termination
If an employee believes the termination was unlawful, they have the right to challenge it in the Labor Dispute Committee or court within 30 calendar days of receiving the notice. If the termination is found to be invalid, the employer may be liable to pay compensation.
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